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Any suggestions on how to get rental comps

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J in Florida

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
We're getting alot of rent schedule requests lately, has anybody had any good luck or good tips on how to get rental comps. It seems like its hit or miss, sometimes they fall into place nicely, sometime its like practicing dentistry.

Is $75 for these with operating income statements reasonable or is it just me :twisted:
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
In my area, there are two sources, MLS, and, in certain areas, there are brokers who specialize in rental properties. A 5 minute phone call and they have always been very helpful.

Roger
 

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Don't forget to search all of the status's in the MLS. I'll pull a search of multi-family properties that are active, sold in the last year, expired etc. Even last year's MLS listing might be current if there were one year leases.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Try the fish wrap (news paper). Many "for lease by owners" will give you the info over the phone.
 
M

mdappr

Guest
My former regional chief appraiser at the former American Savings Bank
told me to find rental comps by simply PFA: (pull from the air or pull from your ***)

But a better source is AIRD fnc (CMDC) books, listed under comments as EMR= ESTIMATED MARKET RENTS
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
In our area, most of the larger real estate companies have agents who specialize in rental properties. Why, I don't know....

Anyway, they have learned to cringe when they hear me on the phone, as I also have had a lot of rental comparisons and O & E requests this year as well. I call them and get the information from them. I don't have time to surf the newspaper. If you get rental amount/lease dates/any inclusions (water,elec., etc.) and address, you can usually use public records or MLS for the other data that you get. Try to get similar (as in number of bedrooms and whether or not there is a pool) as there are usually adjustments in rent for some differences. There is a thread on the forum right now about "size" versus "bedroom count" which can differ in different markets.

For O & E statements, I use personal experience (cost of appliances, AC etc.) and I also use M & S unit costs.

My fees are similar to yours for the easy ones...the upscale ones I charge more.
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Of course the MLS, news paper, and agents. I used to appraise in the SF bay area and there were a few rental agencies that would, for a small fee, provide a rental survey. I think it was in the neighborhood of $15 and very detailed and accurate.
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
All good comments. Most of the time, lenders doing 2-4 family properties seem to want comparable rents (its on the 1025). However, they don't always want an operating income statement. I charge a little (slightly) more than you do for it. Because the fee is built in, I don't charge them extra for the comparable rental data. That data can usually be found in the listings for the properties I am using as comparable sales and comparable listings anyway.

For other properties, it gets a bit harder. Our MLS does not list rent amount on SFR's, so unless the agent puts it in the comments, you won't find it. These are like gold and everytime I find one I put it in a database for future use.

Most of the lenders I've worked for want a comparable rent schedule when doing an SFR as an income property. For this I charge extra. The best source of data I've found is a couple of local agents who double as property managers.

Finding properties that were rented when sold- now that's another issue. I have long held that it should be possible to do an income approach on an SFR in a similar way as is done on many commercial properties; by analyzing the market rent and capitalizing it with cap rates derived from competing investments. However, the appraisal industry (and the client base) seem to be stuck on the idea that the only way to get a good opinion of value is from GRM taken from properties sold while rented. I don't doubt that that is the best way when the data is available, but when it's not I feel like there should be alternatives. However, to date, I have never seen an appraiser use any other method and I don't really want to be a trail blazer. Any comments?
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
"Finding properties that were rented when sold- now that's another issue. I have long held that it should be possible to do an income approach on an SFR in a similar way as is done on many commercial properties"

Steve, I agree. But you know that if you leave that one line income approach blank in the form, and type in SEE ADDENDUM for direct cap rate analysis, the UW will have a hissy fit. That does not fit their underwriting check sheet, and they do not know how to anal-lize it (to use a trotta-izm) :lol: .
 
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